By the afternoon on Tuesday, Asian benchmarks turned mixed. Asian traders were digesting news that China’s producer prices fell to their worst annual contraction in three years.
In Japan, the benchmark, Nikkei 225, was up 0.27 percent. In Tokyo, the broader Topix index rose 0.45 percent. Shares of Nissan motor gained three percent after their chief executive officer resigned his post.
In South Korea, the Kospi composite index was up 0.4 percent. In Australia, the S&P ASX 200 fell 0.75 percent.
In China, the headline equity indices were lower by the afternoon. The Shanghai composite lost 0.36 percent and the Shenzhen composite was down 0.42 percent. The Shenzhen component fell 0.64 percent.
For the month of August. China’s producer price index (PPI) fell 0.8 percent on an annual basis. This was better than the expected contraction of 0.9 percent. Consumer prices rose 2.8 percent in August. This was above the expected 2.6 percent.
Food prices jumped ten percent after rising 9.1 percent in July. Price of pork jumped 46.7 percent in August as China is feeling the outbreak of swine fever.
Asian Traders also look at Trade War News and Wait on Thursday’s ECB Decision
Traders are cautiously optimistic after U.S. Treasury Secretary Steven Mnuchin, told Fox News that “a lot of progress: has been made towards a trade deal with China. He said that the United States is “prepared to negotiate.”
However, regional traders were cautious during the Asian trade session. They are sitting on the sidelines ahead of the European Central Bank meeting. This meeting is scheduled for Thursday and the markets are expecting at least a 20 basis point rate cut and other accommodative monetary policy stimulus including the restart of quantitative easing.